Steel Peak Expands Industrial Outdoor Storage Portfolio with $6.2 Million Pacific, Washington Acquisition
Steel Peak's strategic acquisition of a Washington IOS property highlights the growing demand for industrial outdoor storage assets driven by infrastructure spending and limited supply, positioning the firm for long-term growth in Western U.S. markets.
Steel Peak, a commercial real estate investment firm specializing in industrial outdoor storage properties, has acquired its ninth property on the West Coast with the $6.2 million purchase of a Pacific, Washington site at 1503 Thornton Ave SW. This marks the company's second acquisition in the Seattle market this year, following its founding in January 2024, as it builds a significant presence across Washington, California, and Utah.
The acquisition underscores the strong demand for functional industrial outdoor storage assets, particularly from construction-related users, contractors, and equipment rental companies. According to Steel Peak Principal Blake Rodgers, demand continues to outpace supply, with few sites offering the optimal combination of shop space and large, secure yard areas. Rising infrastructure spending, limited new development, and high replacement costs are driving long-term rent growth for these specialized properties.
The newly acquired property spans 2.40 acres and features immediate access to Highway 167 and the Ports of Seattle and Tacoma, making it strategically valuable for industrial service users. The site includes a 3,000-square-foot maintenance shop with 800 square feet of office space, two 12-foot by 14-foot grade-level doors, and over two acres of graveled and partially paved yard space ideal for outdoor storage and contractor operations. Zoned for contractor yards, building material providers, equipment rental, and vehicle maintenance, the property addresses critical needs in the industrial sector.
Steel Peak Co-Founder Pasha Johnson emphasized the company's commitment to establishing a long-term foothold in the Kent Valley and surrounding submarkets, noting that properties like 1503 Thornton Ave SW are irreplaceable due to their functional utility. The transaction was facilitated by Thad Mallory, SIOR, and Cam Warren of Newmark, who represented both Steel Peak and the private seller. For more information about Steel Peak's investment strategy, visit https://www.steelpeakproperties.com.
Looking ahead, Steel Peak will continue seeking industrial outdoor storage investment opportunities throughout the Western United States, targeting properties with capitalized values ranging from $3 million to $50 million. The firm invests both directly and in partnership with institutional and high-net-worth investors, focusing on hidden opportunities that deliver superior returns in a market characterized by constrained supply and robust demand.